Buying in select blue-chip counters such as HDFC Bank, HUL, ITC and Maruti lifted benchmark indices on Tuesday. Positive global cues, too, boosted investor sentiment.
The S&P BSE Sensex rallied 292 points or 0.76 per cent to end at 38,506.09 levels while the NSE's Nifty50 index closed above the crucial 11,400-mark at 11,428.30, up 87 points or 0.77 per cent.
Out of 30 components of the Sensex, 27 ended in the green and only 3 in the red. Vedanta (up 4 per cent) emerged as the biggest gainer on the index and Bharti Airtel was the top drag.
In the broader market, the S&P BSE MidCap index closed at 13,940.15 levels, up 99 points or 0.72 per cent while the S&P BSE SmallCap index ended at 12,773.61, down 14 points or 0.11 per cent.
Among the sectoral indices on the NSE, barring Nifty IT index, all the other indices ended in the green. Auto stocks advanced the most, followed by metal and private bank counters. The Nifty Auto index ended over 2 per cent higher at 7,688.25 levels.
Volatility index India VIX declined 3.67 per cent to 16.79 levels.
Shares of Indiabulls Housing Finance (IBHFL) dipped 8 per cent to Rs 182 on the BSE on Tuesday, falling 13 per cent in the past two trading days, after Moody's Investors Service on Monday downgraded the corporate family rating (CFR) and the foreign-currency senior secured rating of the housing finance company to B2 from Ba2, citing funding challenges for the company.
Shares of Bandhan Bank and Gruh Finance rallied by up to 9 per cent on the BSE on Tuesday ahead of record date for scheme of amalgamation.
Shares of Gruh Finance will turn ex-date on Wednesday for the proposed amalgamation with Bandhan Bank.
The share swap ratio for the amalgamation was fixed at 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.
Shares of Adani Transmission surged 14 per cent to Rs 255 on the BSE on Tuesday after the company said it has signed a share purchase agreement and completed the acquisition of the WRSS XXI (A) Transco Limited, incorporated by REC Transmission Projects Company. The stock was trading close to its 52-week high level of Rs 256, touched on November 28, 2018.
Wipro on Tuesday posted a 35.1 per cent year-on-year (YoY) jump in its net profit at Rs 2,550 crore for the second quarter of the financial year 2019-20 (FY20). Gross revenue for the period came in at Rs 15,130 crore, up 4 per cent YoY.
Earnings per share (EPS) for the quarter was Rs 4.3 per share and grew 36.7 per cent YoY, the company said in its statement.